Sales of new homes fell this month, decreasing 16.6 percent from December 2006 sales, according to a report issued jointly today by the U.S. Census Bureau and the Department of Housing and Urban Development (HUD).

Bob Walters, chief economist for Quicken Loans, says that while existing homes sales sagged last month, the decrease doesn't accurately depict where the market is heading.

"Following yesterday's surge in existing home sales, the housing market could have benefited from a similar increase in new home sales. However, one month's data does not a trend make, so we'll keep watching the data over the next few months to get a clearer picture of which direction the market is heading," Walters said. "With long-term interest rates remaining in the low- to mid-sixes, and builders' incentives in abundance, there's plenty to entice consumers to enter the market."

Publish Date: 02/28/2007